Letter of Good Standing (SA): What It Is, How to Get One, and Why Contractors Live and Die by It
Letter of Good Standing South Africa: what a COIDA compliance certificate is, how to apply through CompEasy, what it costs, and how to keep yours valid on every site.
If you''ve ever tried to walk onto a South African construction site without a Letter of Good Standing, you already know how the story ends: the guard smiles politely, the safety officer shakes their head, and your team drives back to the yard while the day burns.
The Letter of Good Standing (LOGS) is issued by the Compensation Fund under the Department of Employment and Labour, and it''s effectively your compliance passport. It proves that you''re registered for COIDA and that your assessments are paid up — so if one of your workers is injured on site, the state (not the client) picks up the medical tab.
Who actually needs a Letter of Good Standing?
Short answer: every employer in South Africa. Long answer: every employer, but principal contractors will refuse to let you on site without it. That includes:
- Construction contractors and sub-contractors of every size
- Cleaning, security, catering, and facilities service providers
- Mining, plant hire, transport, and logistics companies
- Anyone bidding on public tenders (municipalities, SOEs, national departments)
Even one-man-band consultants get asked for it. Yes, even you.
How to apply (the honest version)
- Register with COIDA. Do this via the CF-Filing portal or the new CompEasy system. You''ll need your company registration, tax number, banking details, and estimated annual earnings.
- Submit your Return of Earnings (ROE, W.As.8). This is the annual declaration between 1 April and 31 May. Miss it and everything else stops.
- Pay the assessment. The Fund calculates your levy based on your industry class and earnings. Pay it in full or set up an approved arrangement.
- Download your LOGS. Once you''re assessed and paid, the letter is issued through the CompEasy portal. Save the PDF — you''re going to need it a lot.
How long is it valid?
Twelve months from the date of issue, or until your next assessment falls due — whichever comes first. Most principal contractors will refuse anything older than 90 days, so treat it as a rolling document, not a once-a-year headache.
The five reasons your LOGS gets rejected
- Outstanding assessment fees (the classic)
- Return of Earnings not submitted
- Company details on the letter don''t match your CIPC record
- Letter is older than the client''s cut-off (usually 30–90 days)
- You forgot to include it in the safety file and nobody chased you
Where SitePass fits in
Here''s the truth nobody puts in the government pamphlet: the LOGS is only one of about 40 documents a principal contractor will ask for before you set foot on site. Company registration, tax clearance, BBBEE, medicals, inductions, appointment letters, risk assessments, method statements — the list keeps growing.
SitePass keeps all of it in one place, watches the expiry dates for you, and auto-flags your LOGS the moment it drifts inside the 30-day danger zone. When a client asks for a safety file, you generate one in minutes with your LOGS already inside it — properly named, properly indexed, and formatted the way their safety consultant expects.
Ready to stop losing site days to expired paperwork? See how SitePass works for contractors or start a free trial — no card needed.
FAQ: Letter of Good Standing South Africa
How long does it take to get a Letter of Good Standing from the Compensation Fund?
Once your Return of Earnings is submitted and your assessment is paid in full, the LOGS can be downloaded from the CompEasy portal immediately. First-time registrations typically take 5 to 15 working days before assessments are raised.
How much does a Letter of Good Standing cost in South Africa?
The letter itself is free. What you pay is your annual COIDA assessment, calculated on your industry class and total annual earnings. Construction contractors typically pay between 1.0% and 2.5% of payroll.
Is a Letter of Good Standing the same as a Tax Clearance Certificate?
No. A LOGS is issued by the Compensation Fund (Department of Employment and Labour) and covers COIDA. A Tax Clearance Pin is issued by SARS. Principal contractors and tenders usually ask for both.
How often do I need to renew my Letter of Good Standing?
Every 12 months, aligned to your Return of Earnings cycle (submitted between 1 April and 31 May). Most principal contractors reject anything older than 30 to 90 days, so treat it as a rolling document.